Oil Prices Rise On Start of Peak US Demand Season
“Oil prices stayed within touch of USD50 per barrel despite news that some Canadian oil sands producers were planning on restarting operations,”
Oil prices edged up in early trading on Monday as the peak demand US summer driving season officially kicks off just as its crude production falls to its lowest level since September 2014. U.S. West Texas Intermediate (WTI) crude futures were trading at USD49.44 per barrel at 0108 GMT, up 11 cents from their last settlement. International Brent futures were at USD49.36 a barrel, up 4 cents.
“Oil prices stayed within touch of USD50 per barrel despite news that some Canadian oil sands producers were planning on restarting operations,” ANZ said on Monday.
Oil producer Suncor Energy is planning to ramp up output at its oil sands fields in Alberta this week after it was forced to shut down earlier in May due to massive wildfires.
This came just as US crude oil production fell to 8.77 million barrels per day (bpd), the lowest level since September 2014, and down 8.77 percent since their June 2015 peak. In global oil markets, Brent prices have been supported by a series of supply disruptions in Nigeria, where militants have been staging a wave of attacks on oil pipelines, cutting the country’s output to more than two decade lows. Attention will also be on a meeting by the Organization of the Petroleum Exporting Countries (OPEC) in Vienna this week, although most analysts do not expect any decisions that would lead to changes in production.
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